robinhood layoffs 2023

Robinhood Layoffs 2023: Does Robinhood Have A Future?

Is there Robinhood layoffs in 2023? Yeah! During the Coronavirus pandemic, thousands of businesses got into the fight-or-flight method globally. 

Some companies recovered faster, while some were still there and collapsed their business. Robinhood also thrived at that time as its stock market was flourishing after the effect of quarantines and lockdowns.

The stock market was booming, and people turned to investing in the stock market. In 2020, it reported, its net funded accounts increased from 12.5 million U.S. dollars to 18 million U.S. dollars. 

If we talk about its total revenue, Robinhood grew by 245 percent, meaning 900 million U.S. dollars. But the company announced layoffs round this year. Robinhood indeed laid off around 7 percent of its workforce in 2023.

If you are also looking for a blog post that may walk you through the world of investing and its layoffs. This blog may help you to some extent. Here we delve into the status of Robinhood and its layoffs. Besides, how does it work, what is its future, and what is it famous for? 

DiscontinuedNews is impartial and independent, and every day, we create distinctive, world-class programs, news, and content that inform, educate and entertain millions of people worldwide.

Robinhood Layoffs 2023

robinhood layoffs

Robinhood (NASDAQ – HOOD) struggled to decline in trading activity. It led the company to announce layoffs. 

According to reports, the company is laying off around 7 percent of its employees. It means it is eliminating 150 workers.

This round of layoffs is not the first round; the company already did two previous layoffs. For over a year, the company cut down over 1,000 jobs. 

Do you know? Why Robinhood took this decision of job cuts or layoffs? According to the company’s CFO, Jason Warnick, Robinhood adapts to trading volumes. It wants to improve its team structure.

When Robinhood faced a heavy drop in active users, from 21 million to 11 million in the same year, at that time, it also acquired a credit card startup X1 and decided to lay off its workforce.

Robinhood stock shares were boosted by 18 percent in 2023. But if we compare it to the year of 2021 shares, then it declined to 86 percent.

In 2022, reports said, the fintech company slashed around 23 percent of its workforce. Before three months of this layoff round, it cut its full-time workers to 9 percent.

In April 2022, the company had around 3,100 employees after eliminating its 300 workers. 

If we look at the total number of affected employees, it would be about 713 workers. It means Robinhood laid off 23 percent of its workforce and left with 2,400 employees in 2022.

At that time, the company’s CEO revealed, “All the departments would be affected as the layoffs are particularly concentrated in every company operation. Moreover, all program management functions would be at stake.”

Who Is Robinhood Owned By?

Robinhood Markets, Inc. is an American Financial services organization. This California-based Robinhood financial technology launched in April 2013. Vladimir Tenev and Baiju Bhatt owned Robinhood. 

It is headquartered in Menlo Park, California. Robinhood is a FINRA-regulated broker-dealer. Recorded with the U.S. Securities and Exchange Commission. Robinhood plays a vital role in Securities Investor Protection (SIP).  

It also offers services through a mobile app introduced in 2015. It facilitates:

  • Exchange-traded funds
  • Individual retirement accounts
  • Commission-free trades
  • Cryptocurrencies

The company built high-frequency trading platforms in New York City as financial institutions. The company generates revenue every year from three sources include:

  • From customers’ cash.
  • Margin Lending.
  • Sell Order information to high-frequency traders.

According to reports, the company had 22.8 million funded accounts. Additionally, monthly active users, i.e., 15.9 million as of March 2022. In April 2022, it facilitated Cryptocurrency service to its users, i.e., 2 million users or more than that.

What Are The Pros And Cons Of Robinhood?

Two former Stanford roommates introduced Robinhood. The company launched with a desire to expand its business. To do so, it obstructed all the barriers to entry. Later, it put a strong foothold in the market. 

It found a new platform. That involves technology-friendly traders, young minds, and their intuitive trading experience. As of December 31, 2022, Robinhood reported more than 11.4 million monthly active users. It is estimated to be 62 billion U.S. dollars combined. 


  • It features solid cash management and recurring investment functionality.
  • It offers all facilities without any commissions or trading fees.
  • Its trading experience is very simple and intuitive.
  • It offers access to Fractional share trading and direct cryptocurrency.


  • However, it offers many services, but there is a lack of transparency.
  • It has limited asset types.
  • Limited research and educational content.

What Happened To Robinhood?

Robinhood trading app filed for class action lawsuit in 2022. As its users claimed, Robinhood obstructed its users from buying shares. It stopped its users from allowing to buy certain stocks such as GameStop, AMC, Nokia, and Bed, Bath, and Beyond. 

Robinhood users claimed that it is because of its recent volatility in the market. Moreover, the lawsuit claims this trading app has deprived customers of potential benefits.

According to reports, Robinhood filed a lawsuit in California (Southern District). 

The official lawsuit said, “The trading app, Robinhood, is doing everything knowingly. All its actions were a part of its strategy and purposeful. The company planned to mislead the market. Moreover, it benefitted the financial institutions and people (non-Robinhood users)”. 

It claims that app equipped the market in opposition to its users. Besides, it planned to involve in unfair business practices. 

Moreover, the trading app announced rounds of layoffs one after another. In 2023, it planned to lay off around 7 percent of its workforce.

Why Is Robinhood Famous?

In July 2021, Robinhood went public with its fixed share price of 38 U.S. dollars for the initial public offering (IPO). It is famous for “0 U.S. dollar” trading fees, due to which it made its name. 

It assisted a large number of brokers. But no Robinhood brokers were there to remove their trading fees and made it “0 U.S. dollar”. The assisted brokers were Charles Schwab, TD Ameritrade, and E TRADE. 

However, the setup became one of the most successful and popular startups. It does not mean that the startup did not face challenges and controversies. The startup faced many controversies and challenges that ruined its reputation. Still, it standalone among its competitors.

How Does Robinhood Work?

Robinhood was launched to target trading and investing; it allows easy access to them. For every investor, an approachable online discount brokerage process and services are provided. 

It is all set for beginners and amateurs to start with. Robinhood allows its users to invest at highly convenient costs. It offers a highly convenient cost feature. That helps all types of investors, from beginners to young to amateur investors. 

It can be a good start for those approaching the crypto and stock markets. Do you know? Robinhood also allows its users fractional shares as it offers them to buy a smaller part of a stock or ETF without buying the whole stake. This feature supports retail investors too who can not invest a large sum of money.

Robinhood is a United States-based trading app. It offers services accessible only via mobile app or web platform… It has some terms and conditions i.e. 

  • It allows its services for users 18 years or older than it… 
  • Services are provided to U.S. – based customers who have a valid Social Security Number.
  • A legal U.S. residential address is a must.
  • Must have citizenship or permanent house in the United States.
  • If not, then they should have a valid U.S. visa.

Once a user is all set and has a planned trading and investing strategy, it requires only signing up for the Robinhood platform. While signing up, one should only need to add personal information. No need to get tensed to deposit the least charge to open an account.

Does Robinhood Have A Future?

Robinhood offers a wide range of services, but they are extremely limited. Let’s put light on the services that the company offers:

  • ETFs options
  • Stocks
  • Cryptocurrency Trading

However, the firm does not offer fixed-income and mutual funds services. Moreover, it does not allow customers to trade commodities, futures, or forex. 

Although, if customers want to use Robinhood as their broker, then they can invest in the following:

  • American Depository Receipts (ADRs) are available. Besides, ADRs are no short-selling, and stocks are only available for a long.
  • Single and multi-leg alternatives.
  • Cryptocurrency offers a range of coins to trade.

It is noted that more than 25,000,000 US dollars of market capitalization is required. Only those can be eligible for fractional share orders. If you choose Robinhood as your broker, it offers ETFs and stocks.

  • However, it does not provide any mutual funds options.
  • No fixed-income options were there.
  • No Futures and No Forex.
  • Robinhood also has a waitlist option. It allows its customers to handle crypto effectively. Users can also control crypto in a decentralized web experience. In a nutshell, Non-custodial wallets are available.

As of May 2022, it also offers the Stock lending option. So that one can lend out paid stocks in their portfolio completely.

The Bottom Line

We have concluded Robinhood, a commission-free, stock-free and trading app, is laying off. It has shown the door to its nearly 150 workers. After many ups and downs, the app is still in use. So you can use this app to start investing.

Suppose you are among those who are seeking an investment app. Consider this app for investment purposes. Must give it a try. It is specially created for investors, Beginners, and amateurs as well. If you want to build investment, it may offer you great facilities. One should not have to pay higher fees while investing in Robinhood.

On top of that, Robinhood offers a fractional share trading feature. Due to this, Investors can get an advantage while investing in expensive stocks. The advantage is that investors do not have to pay much money.

If you start investing through Robinhood, you can get an opportunity to roll out your money. One should not require to put all its eggs in one basket. You can spread it across many organizations and sectors.

Set your mind once you are all set. Then sign up with the Robinhood app to get a free stock. That free stock price ranges between 5 U.S. dollars to 20 U.S. dollars. You can also get help by contacting its customer service care platform.